Hybrid Goliaths Driving the New Market
With what seems like an immediate depletion of energy, large companies are starting to scramble for a new platform for war: secondary batteries. Readers may be scratching their heads right now thinking what is a secondary battery Fret not; the answer is very easy and very close. The secondary battery's other name is the rechargeable battery, those rectangular boxes that come in the back of our cellular phones and laptop computers. The market for rechargeable batteries has always existed, but only recently has it really taken off with the introduction of hybrid cars, hence the name this editor has written above: Hybrid Goliath.
Overall Analogy
Seeing that the market for hybrid cars is just starting to rev up its engine, this editor thinks that it is important to keep a lookout for who and what will contribute the most not only to the market, but also to the environment. And now, this editor gives you - thunderous drum rolls - the recent lineup of secondary batteries.
Samsung SDI
The company that has been moving most rapidly to gain market share seems to be Samsung SDI. The former leaders of the market for secondary batteries were Japanese manufacturers such as Sanyo, Sony, and Panasonic; Samsung was the late starter. Eight years later, the tables have turned in the secondary battery market as Samsung is now third in the industry.
Most recently, Samsung SDI has been preparing for the future of hybrid cars by joining hands with German car parts manufacturer, Bosch, to start a battery project that concentrates on HEV batteries (hybrid electric vehicles). The joint project comes in the form of a company by the name SB LiMotive. The two companies have invested an approximate US$500 million to building a new plant in Ulsan, Korea that has started production of lithium-ion cells.
In addition, Samsung SDI has been working on a battery that will be able to run for an approximate 300 thousand kilometers. Samsung SDI hopes to acquire a whopping 30 percent of the market share for secondary HEV batteries by 2015.
LG Chemical
LG Chemical has created and mass produced the HEV, which goes into a hybrid goliath that is manufactured by Hyundai and Kia Motors. LG Chemical has created friendly ties with other global car manufacturers as a strategy of gaining access to its future B2B (Business-to-Business) partners. Its first success came as LG Chemical joined hands with the U.S Government, General Motors, Ford, and Chrysler to create a lithium polymer cell. After the project, more success has followed such as LG Chemical's contract with Ford as its the supplier for secondary batteries, forecasted to bring US$446 million a year.
In addition to its HEV line, LG Chemical has also put much effort into its solar energy business. As an example, LG Chemical invented the BIPV, which could be thought of as a house that uses its own solar panels to become a self providing entity. One may think of it as a small ecosystem that relies on the sun. In order to successfully carry out the project, LG Chemical joined hands with Sun Energy of Germany.
LG Chemical is also looking into a variety of other sustainable resources such as polysilicon, which goes into the production of solar cells. The diversification of its portfolio will hopefully bring low risk and high yield in a variety of fields.
SK Energy
The first HEV was invented by SK Energy was immediately put into the Toyota Prius, which was then manufactured into the U.S market. After the implementation of its batteries, SK Energy went into the work of raising the stability of its secondary batteries for the "future car." In 2010, SK Energy unveiled its production line of secondary cells, which brought great hopes for further expansion and prosperity. The line, located in a plant in Daejeon Korea, took five years to complete. The result is an advanced production line that is able to track the history of all products in order to ensure final quality.
SK Energy has invested at least KRW153.3 billion into its line of secondary batteries, which are used to power cellular phones and laptops. However, do not be fooled to think that SK Energy has not extended its powers into the hybrid automobile industry. SK Energy has sealed a deal with Daimler to supply it with HEV batteries.
However, the real reason for why SK Energy may be promising does not lie in its success story of having caught up with its predecessors - Samsung STD and LG Chemical - but in its competitiveness in the production of key materials. SK Energy's technology related to Lithium-ion batteries comes in third in the world stage.
Editor's Choice: SK Energy
All the companies are all going for the pot of gold by investing its efforts into the hybrid market. However, it seems that SK Energy may just end up as the stereotypical success story. Although all three companies have it going for them, SK Energy can be characterized as being careful and meticulous in its processes. As a result, it now has one of the most advanced Lithium-ion Battery Separator (LiBS) technology. This advantaged in research and development will surely payoff depending on effectiveness of SK's future marketing campaign.
